Opportunistic Behaviour by International Channel Intermediaries

Amal R Karunaratna and Lester W Johnson

Journal of Management & Organization, 2000, vol. 6, issue 2, 20-31

Abstract: The relationship between exporters and independent foreign channel intermediaries (FCIs) is complex. The present paper analyses and discusses the potential types of opportunistic behaviour that might be engaged in by foreign agents or distributors (FCIs) using an agency theory approach. A classification framework of opportunistic behaviour is developed and a detailed qualitative examination of the content of five agency-distributor agreements between Australian exporters and their FCIs. A five-category classification scheme for opportunistic behaviour was found that included (1) product, (2) price, (3) information, (4) logistical, and (5) legal opportunism. The implications of each type of opportunism for an exporter are discussed using examples obtained from ways to control opportunistic behaviour are discussed.

Date: 2000
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Persistent link: https://EconPapers.repec.org/RePEc:cup:jomorg:v:6:y:2000:i:02:p:20-31_00

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